View of the city, with Miguelete from the bell tower of the church of St. Catherine in Valencia, Valencia Comunity, Spain. (Photo by Cristina Arias/Cover/Getty Images)

Regional Signal

Valencia emerges as destination for Catalonian companies as Spanish economy shifts


Valencia, Spain

In the dance of corporate migrations across Spain, Valencia emerged as a notable destination, attracting 83 companies from Catalonia in 2023 alone, according to recent data from Informa D&B, a subsidiary of Cesce.

The flow of businesses between regions reveals a dynamic landscape where economic factors, regulatory environments, and political stability play pivotal roles in shaping corporate decisions.

The exodus from Catalonia, catalysed by a range of factors including political uncertainties and business-friendly incentives elsewhere, illustrates the responsive nature of companies to changing environments.

Despite the challenges posed by the pandemic and political disruptions, businesses displayed resilience by actively seeking conducive locations for their operations.

One of the significant moves involved Font Salem, a Valencian company absorbed by Estrella Damm, which shifted its headquarters to Catalonia in July 2023, contributing to the regional dynamics and accentuating the complexities of corporate realignments.

As highlighted in the report, Font Salem’s relocation underscored the substantial shifts in the business landscape, with a noteworthy volume of transactions amounting to 457 million euros.

The trends in corporate migration reflect broader economic currents within Spain. While Catalonia experienced a net loss of 128 companies due to relocations, Madrid emerged as the most attractive destination, welcoming 386 companies, followed by Andalucía with 119 new arrivals.

Valencia’s allure as a relocation hub signifies its growing prominence as the third most sought-after destination for companies leaving Catalonia, capturing 11% of the migrating firms.

The patterns of corporate movements extend beyond geographical boundaries, embodying economic interplays.

Galicia, Catalonia, and Asturias emerge as significant beneficiaries in terms of revenue influx from relocated companies. Galicia leads the pack with an infusion of 14.191 billion euros, primarily attributable to Stellantis Spain’s relocation from Aragón, representing a significant boon for the region’s economy.

Catalonia, despite experiencing a net outflow of companies, witnessed an inflow of 3.920 billion euros, reflecting the enduring economic vibrancy of the region despite the challenges posed by corporate relocations.

Font Salem’s relocation stands as a testament to the intricate dynamics driving corporate decisions, encapsulating both strategic imperatives and broader economic considerations.

The broader context of corporate migrations underscores the adaptive nature of businesses in navigating complex regulatory environments and seizing opportunities in dynamic market landscapes.

The changing patterns of corporate relocations mirror the evolving economic narratives within Spain, where regions vie for corporate investments amidst a backdrop of shifting political and economic dynamics.

As the economic landscape continues to evolve, Valencia’s role as a magnet for corporate relocations underscores its growing significance as a vibrant economic hub within Spain, embodying the resilience and dynamism of the country’s business ecosystem.

Amid the flux of corporate migrations, Valencia stands as a beacon of stability and opportunity, welcoming businesses seeking new horizons amidst a sea of economic uncertainties.